The Richmond saga is still haunting media houses in Tanzania. It has lately found its way to New Habari Corporation Ltd, one of the fastest-growing, where it has wrecked havoc among senior editors.

Some have had to exit from the company.

Impeccable sources have confirmed to ET that the paddle emerged after a clique of editors at New Habari House decided to rebuild the image of sacked Prime Minister Edward Lowassa after being implicated in the dubious emergency power supply contract. With him also went two senior cabinet ministers Mr Lowassa is a close ally of the owner of New Habari Corporation, a business magnet and the MP for Igunga, Rostam Aziz. The Tanzanian of Iranian extraction is closely shadowed by the Richmond scam.

Apparently, Mr Atilio Tagalile, the Group Managing Editor of New Habari Corporation, wasn't ready to soft-pedal on the Richmond saga. So he twice intervened and spiked opinionated features written by some editors in defence of Lowassa.

Two senior editors at New Habari - Muhingo Rweyemamu and Deodatus Balile - are alleged to have been sympathetic or masterminds of a scheme to redeem Mr Lowassa. They are staunchly behind their boss, Mr Rostam.

The editors' row at Habari Corporation was triggered by a feature written by Mr Nyaronyo Kicheere, the editor of Kulikoni, a Swahili daily, that described some journalists as bootlickers' of Mr Lowassa and other ministers who were wiped away by Richmond Saga. Mr Nyaronyo did not mention names but indirectly referred to one of Balile's articles that allegedly sought to sanitize Mr Lowassa. He also alleged that New Habari House was established by dubious money.

While in Mr Lowassa's Monduli constituency a few days after the ex-PM's resignation, Mr Balile, wrote a feature article in Mtanzania daily defending him and claiming he was innocent. He also touched on such mundane issues like how smart Lowassa's wife, Regina, was during the meeting and how Mr Lowassa's trousers were ironed well.

Upon reading Nyaronyo's article, Muhingo is said to have written an opinion in Rai, where he is the managing editor, about Mr Reginald Mengi, the owner of IPP group of companies, which also owns Kulikoni. His article dwelt on how Mr Mengi allegedly got his dubious' wealth with which he started his newspapers.

Mr Tagalile allegedly omitted it and asked Muhingo to write another piece. Mr Tagalile's bid to downplay efforts to put Richmond records straight' is said to have greatly infuriated the owner, who is said to have directed the CEO, Ms Rosemary Mwakitwange, to demote Mr Tagalile to the position of editor of The African.

Employing divide and rule tactics, Mr Aziz found it necessary to consult Ms Mwakitwange and Tagalile himself over his decision, but instead sided with the two juniors.

Having smelled a rat, Mr Tagalile decided to call it quits at a staff meeting, few minutes before Ms Mwakitwange announced the new changes.

Three senior officials also resigned in solidarity. The bitter pill was the face-to-face exchange between Mr Tagalile and his subordinate, Mr Balile, in the presence of other staff.

Mr Balile was probably bitter this time because it was under Mr Tagalile's leadership that he was demoted from Chief Editor of the Swahili daily, Mtanzania, to staff reporter of Mtanzania on Sunday. There wasn't any explanation for his demotion. Now Mr Tagalile was back again, spiking their articles that aimed at defending the owner and cleansing Mr Lowassa.

The other two who resigned were Ben Mhina, the operations and distribution director, and Chrysostom Rweyemamu, the director of training who doubles as principal of Mamet, a media school under New Habari House.

Sources confide this exit is just the beginning of the exodus of some other heavyweights in the company as well as senior reporters. Two editors loyal to Mr Aziz allegedly worked tirelessly behind the scenes to force Tagalile out so they could control the newsroom. Tagalile is said to have been a stumbling block to their project'.

Mr Tagalile was said to be against the move by his two junior editors to cleanse' the former PM through the press, and especially using the papers he was managing. "When the pro-Lowassa editors seemed to carry the weight of the owner, Mr Tagalile called it quits," sources confided.

Ms Mwakitwange is said to have half-heartedly let go of Tagalile on March 31, 2008. When contacted for comment, she said she was busy with serious company business.

The Richmond scandal has divided some media houses in the country mainly because of Mr Lowassa's closeness to a great number of influential journalists whom he had been helping materially.

Only a year ago, Habari Corporation, once owned by experienced journalists Salva Rweyemamu, Jenereali Ulimwengu and Dr Gideon Sho, was on the verge of closure due to cashflow problems. The company had failed to pay salaries and other operational obligations until Mr Aziz bought a controlling stake.

It was Mr Aziz who reorganised the company and appointed Ms Mwakitwange as CEO and brought in journalists like Mr Tagalile.